UK chancellor says confident sterling will find ‘appropriate’ level

Philip Hammond says short-term movements can be ‘irritating’

British chancellor of the exchequer Philip Hammond: the UK government has “a high degree of confidence in forex markets”, he said at the World Economic Forum in Davos. Photograph: Neil Hall

British chancellor of the exchequer Philip Hammond: the UK government has “a high degree of confidence in forex markets”, he said at the World Economic Forum in Davos. Photograph: Neil Hall

 

UK chancellor of the exchequer Philip Hammond said he is confident the pound will find an “appropriate level” as Britain progresses with its plan to exit the European Union.

While short-term movements in the currency “can be irritating at times,” the UK government has “a high degree of confidence in forex markets,” Mr Hammond said at the World Economic Forum in Davos.

“We are confident the markets do work and that sterling will find its appropriate level at any given time,” he said.

UK prime minister Theresa May set out her plan for Brexit in a long-anticipated speech on Tuesday, in which she said for the first time that her government is determined to make a clean break from the EU and Parliament will get a vote on the final deal. It sent sterling to its biggest one-day gain against the dollar since 1993.

Sterling was 0.4 per cent higher at $1.2306 as of 8.20am, leaving it down more than 17 per cent since June’s referendum – the worst performer among major currencies tracked by Bloomberg.

– (Bloomberg)